Saudi Arabia, a Growing Market

There has been an increase of 6.4 % in the spending on IT services in Saudi Arabia. This is an increase of more than $ 700 million from 2004 – 2005. This increase can be attributed to the large demand for outsourcing demand. The Saudi results have shown a growth in the regional economy. A new level of maturity is visible in the way services are being deployed in the market. There is a increase in the number of local companies as well as international companies that have a local presence have started to consider IT as an alternative and started to make use of services that were previously done in – house. As per the data by IDC the outsourcing services in the Kingdom increased by a whooping 56 % from 2004 – 2005. Another area that is witnessing strong growth is the investment in customization. There has been an increase of 32 % in this segment.